2 No-Brainer Dividend Stocks to Buy Hand Over Fist

You could build long-term wealth with these dependable Canadian dividend stocks that combine steady income, strong earnings growth, and clear expansion plans.

Key Points
  • Bank of Montreal (TSX:BMO) delivered strong second-quarter earnings growth, raised its dividend, and continues investing in AI and long-term business expansion.
  • Canadian Utilities (TSX:CU) is growing through regulated infrastructure investments while maintaining reliable dividend payments and advancing major energy projects.
  • These companies combine resilient businesses, shareholder-friendly capital allocation, and long-term growth initiatives that make them attractive dividend stocks to buy now.

Some stocks can make investing feel harder than it needs to be. Every quarter becomes a debate about whether growth will slow, margins will shrink, or expectations have become too high. But investing in fundamentally solid dividend stocks could be different. The best ones are built around businesses that generate steady cash flow, reward shareholders consistently, and keep finding ways to grow without taking unnecessary risks.

Those qualities don’t guarantee market-beating returns every year, but they can make holding the stock through good times and bad much easier. In this article, I’ll share two such Canadian dividend stocks that look like easy buys for investors with a long-term mindset.

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Bank of Montreal stock

If you are searching for a no-brainer dividend stock with the scale and financial strength to keep rewarding investors, Bank of Montreal (TSX: BMO) deserves a closer look.

The Canadian banking giant serves about 13 million customers across North America through its personal and commercial banking, wealth management, and capital markets businesses. BMO stock has climbed 61% over the last year and now trades at $252.12 per share with a market cap of $177 billion. Even after the strong rally, it continues to offer a solid 2.7% annualized dividend yield.

The recent momentum in BMO stock has been backed by its stronger earnings growth trend. In the second quarter (ended in April 2026), BMO posted net income of $2.6 billion, up 34% year-over-year (YoY), while adjusted net income also climbed 34% to $2.7 billion. The improvement was mainly driven by lower provisions for credit losses, higher fee income across Capital Markets, Wealth Management, Treasury and Payments, and steady commercial loan growth in both Canada and the United States.

Recently, BMO also increased its quarterly dividend by 5% YoY to $1.71 per share and repurchased six million common shares during the quarter. At the same time, the bank continues investing in long-term growth through its newly launched Institute for Applied Artificial Intelligence (AI) and Quantum, while focusing on improving customer experience and supporting clients with responsible AI adoption.

Strong earnings growth, rising shareholder payouts, and continued investments in innovation make BMO an attractive dividend stock for long-term investors to buy hand over fist.

Canadian Utilities stock

If you want another no-brainer dividend stock backed by a stable business model, you may want to consider Canadian Utilities (TSX: CU).

The diversified energy infrastructure firm operates electricity and natural gas transmission and distribution assets, along with energy storage, cleaner fuels, and infrastructure businesses. CU stock has gained 42% over the last year and currently trades at $55.15 per share with a market cap of $11.4 billion. It also offers an attractive 3.4% annualized dividend yield.

In the first quarter, the company’s adjusted earnings rose 4.3% YoY to $242 million from $232 million a year earlier. During the quarter, Canadian Utilities invested $353 million in capital projects, with 94% directed toward its regulated utility operations. Those investments continue to strengthen its regulated asset base and support future earnings growth.

The company is also moving ahead with several major infrastructure projects. Its Yellowhead Pipeline remained on track for construction to begin after regulatory approvals, while the Central East Transfer-Out Project was expected to be energized by June 2026, helping integrate more renewable energy into Alberta’s electricity grid.

Its regulated operations, consistent infrastructure investments, and expanding project pipeline make Canadian Utilities another attractive dividend stock to buy hand over fist for investors seeking dependable long-term returns.

Fool contributor Jitendra Parashar has positions in Bank Of Montreal. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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